It’s important to establish a Will, and keep it up to date. Your Will documents the manner in which you want your estate to be managed when you die, and who you wish to benefit from it.
Unfortunately, over half of Canadians have no valid Will*. Dying without a Will – or “intestate” – means that under the succession laws of your specific province, the government becomes the controller and executor of your estate. The government decides how your estate is settled, and when and to whom any assets or residual value goes to. This can often mean higher fees, lost earnings and opportunities regarding your assets, and unnecessary if not devastating hardship for those you would likely wish to benefit from your estate.
Where there’s a Will, there is a way
Here are five reasons to establish or update your Will:
- Creating your legacy: A Will tells the government, the courts, your executor and your beneficiaries what your wishes are, as well as when, how and to whom you wish your estate to be dispersed – including any charitable legacy.
- Protecting your partner: While a surviving spouse will usually inherit some or all of a deceased’s estate even if they die intestate (depending on the relevant provincial law), that is NOT assured if the partner is common-law or unmarried.
- Providing for your children: Especially if you have minor children, your Will can stipulate whom you establish as their guardian(s), as well as how, how much and when they receive an inheritance.
- Maximizing the value of your legacy: Having a well-considered and established estate plan and Will can help ensure that the assets that make up your estate are properly and timely managed, (e.g., your investment accounts, vacation and/or rental properties, your business) to maximize their value for your beneficiaries, while also properly managing the estate’s taxes and fees.
- Appointing a trusted executor: Whether it appoints a corporate executor and/or an individual, your Will can ensure that you have a trusted and competent executor. This can help ensure your estate is settled the way you wish, alleviate the burden on your loved ones and reduce friction amongst beneficiaries.
“Wilted” Will
Wills can go stale, so it is important to review your Will every three to five years to ensure it still reflects your wishes. As well, life events such as divorce, a death of a spouse or a meaningful change in financial circumstances can have a profound impact on your estate, and can even invalidate a previously valid Will. Reviewing and updating your Will is also an opportunity to reassess your executor’s suitability, which may have changed over time.
Talk to us to find out how we can help.
*2019 Canadian Financial Capability Survey (CFCS), Financial Consumer Agency of Canada (2019).
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